A large number of studies confirm the great importance of the customer experience. In the study “Connected Commerce 2025” by DigitasLBi, two thirds of the respondents state that they shop more often when they are addressed via personalized content. 75 percent of them register in online shops with special offers based on their personal preferences. In addition, there is a decline in brand loyalty.
In Adobe’s 2020 “Experience Index” study, over a third of respondents said they were less loyal to a product or brand. In addition, the “amazonization” of retail is increasing the need for speed, simplicity and convenience. Retailers need to serve their customers holistically and deliver real experiences to be relevant. It starts in marketing, but extends across the entire value chain.
Old hat – personalized digital marketing
Collecting and evaluating customer data is not a new invention, especially in e-commerce. Marketers have always followed the behavior of users on the company homepage. Data about the digital customer journey, i.e. from which page or which advertising material (banners, videos, etc.) the customer comes to the webshop, which products he looks at, what ends up in the shopping cart and much more.
In this context, more and more customer data has been generated and analyzed in recent years. Marketing and sales mechanisms such as “Other customers who are interested in this item also bought …”, personalized e-mails or landing pages, as well as targeted placement on digital advertising spaces have meanwhile become standards for most e-commerce providers. According to the E-Privacy study by PwC (2019), four out of ten German consumers estimate that the ads displayed correspond to their interests.
AI in digital marketing: smart and efficient
AI can be used here in a wide variety of ways. It helps to understand customers and their needs well enough to be able to accompany them throughout their entire customer journey. For retailers, the first thing to do is to guide interested parties to the online shop. According to a survey by Factfinder (2020), 35 percent of them rely on an AI-based shop search. If the interested party is in the shop, artificial intelligence helps them with the purchase decision (boost conversion).
29 percent of retailers used AI for product recommendations that are displayed to customers individually and in real time, for personalizing customer experiences (22 percent) and dynamic content (18 percent). Chatbots use 17 percent of those surveyed to handle customer inquiries quickly and efficiently. These text-based dialogue systems become more intelligent with every conversation. Freddy Freshbot from Hello Fresh, for example, is a Facebook Messenger chatbot that provides customers with recipe ideas and groceries. A more precise approach and efficient control of the measures minimizes wastage and thus increases marketing efficiency.
Hyperpersonalization and Predicted Behavior
Hyperpersonalization goes one step further: towards real 1: 1 customer communication and interaction. The point here is not just to know the customer, but to forecast his behavior in order to then address and serve him in real time. With the right message at the right time, in the right place and with the right content. Hyperpersonalization aims at a higher degree of personalization with the help of AI and support from cloud solutions.
The drugstore dm provides its customers with AI-supported offers and information and tries to address them in real time in a personalized way – regardless of whether they are surfing the website, ordering via the app or shopping in the store.
AI in Marketing: Business of Experience
An optimized customer experience is only the beginning of an all-round personalized customer experience. To this end, holistic omnichannel solutions, suitable service offers, personalized products, individual deliveries and services and much more are increasingly included. The result: the so-called Business of Experience – an approach to even more comprehensive customer focus and new growth.